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Effective January 1, 2025, businesses in the European Union, including Hungary, can apply for a small business VAT exemption outside their member state of establishment, provided they meet the conditions under the Special Scheme for Small Enterprises (SME scheme). This initiative simplifies cross-border tax compliance for eligible small businesses.
Hungarian businesses can register for the SME scheme via the SME section of their Customer Portal using their taxpayer identification number. However, private individuals logging in with taxpayer identification signs will not have access to SME functionalities.
To benefit from the cross-border VAT exemption, businesses must submit a prior declaration through the portal. More details on the VAT exemption conditions are available on the National Tax and Customs Administration’s website.
For further reference, see Article 284 of Directive 2006/112/EC and Chapter XIII, Section 3 of Hungary’s Act CXXVII of 2007 on VAT.
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